The official 2026 Cost-of-Living Adjustment (COLA) for Social Security has been announced at 2.8%, but the real impact on your monthly budget is a far more complex equation. This episode breaks down the new adjustment, analyzing how this relatively modest increase translates to an average of about $56 extra per month for the typical retiree. We also detail how the rising cost of Medicare Part B premiums will likely consume a significant portion of that raise, and what you can do to adjust your budget and protect your retirement purchasing power in the year ahead.

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